The normally quiet weekend was livened up this past Saturday with Berkshire Hathaway’s annual shareholders’ meeting and quarterly report. Warren Buffett was not replaced as the company’s board chair. The company’s class B stock earnings per share (EPS) fell by more than 50% year over year. Operating earnings were essentially flat, and the results were skewed by differences in unrealized gains and losses. Berkshire repurchased $3.2 billion in classes A and B common stock during the quarter. Shares traded up about 0.5% in Monday’s premarket session.
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Pipeline operator Enterprise Products traded up about 0.6% early Monday after posting first-quarter results that beat both profit and revenue estimates. Revenue rose 24.3% year over year. Also, ON Semiconductor beat both top-line and bottom-line estimates. Shares traded up more than 4% in the premarket.
Before markets opened on Friday, Chevron, Exxon Mobil, Phillips 66 and Weyerhaeuser reported quarterly results. Every market sector closed lower Friday, with energy and materials posting the smallest losses.
Chevron missed on both profit and revenues, and the shares closed down by about 3.2% on Friday. Exxon Mobil missed on EPS but handily beat on revenues. The stock closed down 2.2% on Friday.
Refiner Phillips 66 beat the EPS estimate and restarted its $2.5 billion stock buyback program. The stock closed Friday down about 0.5%.
Lumber giant Weyerhaeuser beat estimates on both the top and bottom lines. Shares closed down about 1.6% on Friday.
After markets close Monday, Devon Energy, Diamondback Energy, Mosaic and Williams will report quarterly results. Before markets open on Tuesday, BP, Marathon Petroleum, Paramount Global and Pfizer will release quarterly earnings reports.
Here is a look at three companies on deck for earnings reports after markets close Tuesday.
24/7 Wall St.Advanced Micro Devices
At the end of 2021, shares of chipmaker Advanced Micro Devices Inc. (NASDAQ: AMD) were up about 30%. The stock plunged by 23% in January and, for the past 12 months, shares are up just 1.8%. The stock closed down 4.6% on Friday, getting a further push downward from Intel’s comments that the global chip shortage is likely to last longer than once expected and rising inflation is keeping customers’ hands on their wallets. AMD’s outlook for the rest of the year probably will have more influence on the share price than first-quarter results.
There are 39 analysts covering AMD, and 22 have rated the stock a Buy or Strong Buy while another 16 have Hold ratings. At a recent price of around $85.50 a share, the upside potential to a median price target of $147.50 is 72.5%. At the high price target of $200, the upside potential is 134%.
Consensus estimates call for first-quarter revenue of $5.58 billion, which would be up 15.6% sequentially and 61.7% higher year over year. Adjusted EPS of $0.92 are flat sequentially and up 43.5% year over year. For the full 2022 fiscal year, analysts’ current consensus estimates call for EPS of $4.03, up 44.6%, on revenue of $25.46 billion, up 54.9%.
AMD stock trades at 21.2 times expected 2022 EPS, 17.6 times estimated 2023 earnings of $4.85 and 14.6 times estimated 2024 earnings of $5.86 per share. The stock’s 52-week range is $72.50 to $164.46. AMD does not pay a dividend, and total shareholder return over the past year is 1.9%.
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Airbnb
Over the past 12 months, shares of vacation rental provider Airbnb Inc. (NASDAQ: ABNB) have declined by nearly 15%. Since posting a 52-week high in mid-November, the shares are down about 23%. Last week, the company announced a flexible work plan that essentially allows staff to live and work anywhere. Among the plan’s key features is one that allows people to move to any location in the country they work in without changing the employee’s compensation.
Of 39 brokerages covering the stock, 20 have a Hold rating while 16 have either Buy or Strong Buy ratings. At a share price of around $153.20, the upside potential based on a median price target of $200 is 30.5%. At the high price target of $250, the upside potential is 63.2%.
First-quarter revenue is forecast at $1.45 billion, down about 5.2% sequentially but up 63.5% year over year. Airbnb is expected to post a loss per share of $0.24, significantly better than the prior year’s quarterly loss of $1.75. For the full year, analysts are looking for EPS of $1.42, far less than the year-ago loss of $0.39, on revenue of $7.87 billion, up 31.4%.
Airbnb stock trades at 102.8 times expected 2022 EPS, 70.9 times estimated 2023 earnings of $2.16 and 54 times estimated 2024 earnings of $2.84 per share. The stock’s 52-week range is $129.71 to $212.58. The company does not pay a dividend, and total shareholder return over the past year is negative 13.8%.
Livent
Lithium producer Livent Corp. (NYSE: LTHM) has seen its share price rise by more than 13% over the past 12 months. Since posting an all-time high last November, the stock is down 34%. Battery-grade lithium currently sells for around $70,000 per metric ton, just shy of an all-time high of more than $75,000 posted in mid-March. Demand for the material is expected to remain high but could be moderated as new mines come online.
Of 13 analysts covering the stock, eight have a Hold rating while another five rate the stock as a Buy or Strong Buy. At a share price of around $21.40, the implied upside based on a median price target of $29 is 35.5%. At the high price target of $41, the implied upside is 91.6%.
First-quarter revenue is forecast at $139.92 million, up 13.9% sequentially and 52.6% year over year. Adjusted EPS are forecast at $0.14, up 72.5% sequentially and up from EPS of $0.02 per share in the year-ago quarter. For the full 2022 fiscal year, EPS is currently forecast at $0.61, up 241%, on revenue of $585.49 million, up 39.3%.
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